Adams Golf: Breakthrough In Corporate Governance Problems?

| About: Adams Golf, (ADGF)

Earlier this week, I sent a letter to two of Adams Golf's largest shareholders - the Gregory family and Roland Casati. I also published the letter on Seeking Alpha here. In the letter, I impored these shareholders to recognize the ongoing dilution and inadequate returns on capital generated by CEO Chip Brewer.

On Thursday, the Gregory family and Mr. Casati released an SEC form 13-D, wherein Mr. Casati has irrevocably pledged to vote his shares with the Gregorys. In total, they represent nearly 35% of the outstanding equity. More importantly, they will be voting against Mr. Brewer as a director on the board in next year's proxy, and indicated they may submit "other possible related proposals to present to the stockholders." While vague, taken in context with the vote against Mr. Brewer indicates to me they are hearing the shareholder frustration.

I can only hope my letter helped expedite what has been a long time coming.

Disclosure: I am long ADGF.